Saudi Arabia is expected to increase prices for all grades of crude oil it sells to Asia for June, Reuters reported on Thursday, citing a survey of traders.
The Kingdom could raise prices by as much as $1 a barrel after the cash Dubai price spread between the first and third month widened in backwardation by the same amount last month.
Three of the four respondents said the June OSP for flagship Arab Light may rise by 50-60 cents to hit the highest since August 2014, while only one respondent expected Saudi Aramco to adjust prices this month by keeping Arab Light's OSP unchanged.
The survey also expected Saudi Aramco to moderate its price hikes after it unexpectedly raised the May Arab Light OSP last month.
Aramco sets its crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month, based on yields and product prices, the report said.
Saudi crude OSPs are usually released around the fifth of each month, and set the trend for Iranian, Kuwaiti and Iraqi prices, affecting more than 12 million barrels per day of crude bound for Asia.
Crude prices surged 52 percent last year, registering the first annual gain in four years, after OPEC and non-member nations agreed to cut output by a combined 1.8 million barrels a day to curb the supply glut in the market.
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